Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 ILLEGIB Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 ~ Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 ~ %/ ~ 2 o a _ NO FOREIGN DISSEM No. Pages 14 '~" 5 . q R 1 196 ~~`~ MA ~' to February 1965 COST OF CONSTRUCTION AND CAPITAL INVESTMENT / IN .SELECTED PLANTS .OF THE SOVIET AEROSPACE INDUSTRY, KUYBYSHEV PLANTS NO. 1, NO. 18, AND NO. 24 / CIA/RR EP SC 65-Z (ORR Project IVo. 33.4496) CENTRAL INTELLIGENCE AGENCY NO FOREIGN DISSEM -r~~ ~'-r'/'-~'1rT Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 T(7R SFCRET -CHESS RUFF FOREWORD This publication is not an industrial analysis of the Kuybyshev facilities or their activities but is intended to be used in conjunction. with other reports as an aid in such analysis and as a source of sup- plemental data. The term aerospace industry refers to major plants for the fabrication and assembly of missiles, aircraft, and related engines. Common construction cost inputs .and a common construction capital investment ratio have been used: in all computations. The basic methodology used to cost the facilities was set forth in an earlier publication, GIA/RR EP SC 64-16, Cost of Construction and Capital Investment in the Dnepropetrovsk Missile Development and Production Center, October 1964, TS CHESS RUFF/NO FOREIGN DISSEM. TOP SECRET CHESS RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 TOP SECRET CHESS RUFF Summary and Conclusions I. II. Introduction Method of Estimating the Cost of Construction and Capital- Investment A. Conditions in the Construction Area 4 B. Physical Facilities Constructed 4 C. Costing and Capital Investment 6 III. Limitations of the Data ~ . Source References USSR: Cost of Capital Investment and Construction in Kuybyshev Aerospace Plants, Selected Periods, Pre- April 1943 - July 1964 - TOP SECRET CHESS R~JFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 T~~R ~FC`R~~'T C~~iF.C.C~ RT TFF Following Page Figure- 1. USSR: Kuybyshev Airframe Plants No. 1 and No, 18 ~ . Figure 2. USSR: Kuybyshev Aircraft Engine Plant No. 24 . TOP SECRET CHESS RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 TOI' SECR~~T CHESS RUFF CGST OF CONSTRUCTION A1VD CAPITAL INVESTMENT IN SEL,I=?CTED PLANTS OF THE SOVIET AEROSPACE INDUSTRY, KUYBYSHEV PLANTS NO. 1, NO. 18, AND NO. 24=:; Summary and Conclusions The total cost of construction of Kuybyshev,Airframe Plants No. ~ 1 and No. 18 and of Aircraft Engine Plant 1\TO. 24 is estimated to be US $124 million, or 70 million rubles. =~;=~ Based on the estimated rela- tionship between the cost of construction and total fixed capital assets for this industry, ===x=:: total capital investment (which includes cost of construction) at these three plants is estimated to be $278 million, or 156 million rubles. The estimated cost of construction at Plant No. 1 is $45 million, or 25 million rubles; at Plant No. 18, $48 million, or 27 million rubles; and at Plant No. 24, $31 million, or 18 million rubles. In each plant the major volume of construction activity was carried out before April 1943. After the initial period, however, all three plants were expanded. Plant No. 18 was expanded mainly during the period 1943-59, with relatively little expansion thereafter. Plant No. 1 under- went only minor expansion between 1943 and 1959 but since then has ex- panded significantly. Finally, Plant l~To. 24 has expanded continuously since 1943 but at a.generally declining rate. -? The estimates and conclusions in this publication represent the best judgment of this Office.. as of 1,5 December 1964. ?- ? Throughout this publication, dollar values are given in 1963 US dol- lars, and ruble values are given_in?new rubles expressed .in 1955 prices. Dollar values in 1963 prices have been deflated to 1955 prices and then converted to new rubles in 1955 prices at the 1955 ruble-dollar ratio of 0.71 ruble to US $1 for all industrial construction. ''' ~ ?- '~ For a detailed methodology, see source 1/. (For serially num- bered source references, see the Appendix..) TOP SECRET CHESS- RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 TOP SECRET CHESS RUFF I.. Introduction Kuybyshev Airframe Plant No. 1 and Kuybyshev Airframe Plant No. 18 are adjacent to each other and originally were almost mirror images. Located about .7 nautical miles (nm) east-northeast of the center of Kuybyshev on the eastern outskirts of the suburb of Bezymy- anka, these plants are adjacent to the southwestern edge of Kuybyshev/ Bezymyanka Airfield. Kuybyshev Aircraft Engine Plant No. 2~4 is located 4 nm east of Kuybyshev in the surburban city of Bezymyanka and 0. 8 nm southwest of Plants No. 1 and No. 18. The areas occupied by the respective plants are approximately 324 acres for Plant No. 1, 358 acres for Plant No. ]8, and 273 acres for Plant No. 24. The plant layouts used in this publication and the identification of the major buildings, by type, are shown in Figures 1 and 2. =~ The share of the total.. building cost 'allocated to different types of buildings is tabulated below. The larger percentage of total cost in Plant No. 18 for the machine/assembly shop is the result of the addition of two large assembly-type buildings representing approximately ?30, 000 square feet of roof coverage. i _ Percentage Share of Total Cost of Buildings I Type of Building Plant No. 1 Plant No. 18 Plant No. 2k Administration engineering 8 12 6 Forge and foundry 3 1 ~+ Mathine~assembly shop 51 71 70 Warehouse storage 5 5 7 Power ~+ - 3 Test 5 Airfield 1 1 . A11 others Total 28 100 7 100 8 100 ~i Following p. 7. Unless otherwise indicated, identification and dimen- sions of the buildings are from published NPIC reports and from reports of this Office. TOP SECRET CHESS RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Tin cFf`RFT r,u~cc RT 7FF -available information indicates that these plants were built initially for production of aircraft. The majority of construction in all three plants was carried- out before 1943, and additions, modifications, and new construction have continued intermittently to the present time. The volume and value o.~ construction as allocated over time and shown in the table are in accordance with aerial photography as interpreted in published reports. 2/ II. Method of Estimating the Cost of Construction and Capital Investment The basis for estimation of dollar costs in this publication was the cost prevailing in 1963 for an area in the US having conditions com- parable. to those of Kuybyshev. The northern Great Plains region in northwestern North Dakota .and northeastern Montana was selected as such a region. Data on .climate and soil for Kuybyshev 3/ indicate that the soils are leached chernozems, consisting of relatively heavy clay and silt. They are' underlain by predominantly soft bexirock formed of sand, silt, clay, and gravel, with occasional outcrops of bedded limestone. Information on the depth of sail and bedrock iri the specific area under consideration is, not readily available. A construction season in this area of approximately 7 months (from 15 April to 15 November) was considered to be average on the basis of climatic and precipitation tables. This assumption is con- sistent with published Soviet data which state that supplementary ex- penditures must be paid to compensate for the special conditions -of production in wintertime -- 157 calendar days (or roughly 5 months). 4/ Soils are frozen to a depth of at least 10 inches between late November and early April, -with average maximum depths of 32 inches occurring in February and March. Average annual precipitation is 15 inches, with the months of September and October receiving the heaviest amounts (1.7 inches each). Kuybyshev Airframe Plant INTO. 1 and Kuybyshev Airframe Pant No. 18 probably contain the neatest and most modern facilities for TOP SECRET CHESS RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part - Sanitized Copy Approved for Release 2012/03/23: CIA-RDP78T05439A000500070010-2 USSR: Cost of Capital Investment and Construction in Kuybyshev Aerospace Plants a~ Selected Periods, Pre-April 1943 -.July 1964 _ __ Thousand 1963 US ~ 'Before April 1943 - December 1959 - A rim 1 194 November 1959 November 1862 0 Capital investment c~ 191,944 56922 18,374 Plant No. 1 76,179 6,700 12,333 Plant No. 18 69,036 3 204 1,022 Plant No: 24 46,729 15,018 5.,018 Of which: Construction 8~5 799 25~ g 2~~13 Plant No. 1 34,052 2,995 ~7~ 513 Building 29,962 2,878 5,440 Heavy 4,090 117 73 Plant No. 18 30,859 15,736 457 0 Building 26,897 15,664 402 heavy 3 , 962 72 55 Plant No. 24 20;888 6,713 2,243. Building 17,161 6,660 2,194 Heavy 3,727 53 49 -- ------ --? -.,,, r.~,,.,,,. c. Derived from costs of construction. December 1962 - Thousand Thousand July 1964 1g63 us ,' New Rubles b~. 10758 42 3,128 3,235 ~7_~ 15 9 '609 55,980 108,389 60;915 70,000 39,340 4~0 124265 6gt837 1,965 44,525 25,023 1,889 ~io,169 22;575 76 i+,356~ 2,448 1, 98 48,450 27,229 1,336 44,299 24,896 62 4,151 2,333 1,446 3 ,290 17,585 1,397 27;412 .15,406 49 3,878 2,179 a. Por purposes of estimation and comparison, the data shown here have not been rounded. The data, however, are be- lieved to be accurate as to the general magnitude. Declassified in Part - Sanitized Copy Approved for Release 2012/03/23: CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 TOP SECRET CHESS RUFF production of aircraft in the USSR., The large manufacturing and shop buildings are constructed of steel girders with exterior walls of red brick. Although not built in accordance with US design, the buildings have many features associated ~vitli modern industry. 5/ For the purposes of this publication, Kuybyshev Aircraft Engine Plant No. 24 is assumed to be of the same type of construction as Plants No. 1 and IVo. 18 because it vas constructed at approximately the same time. C. Costing and Capital Investment The methodology used in estimating the cost of construction is detailed in a previous publication on the _Dnepropetrovsk Missile Develop- ment and Production Center. 6/ Buildings and structures were costed on a building-by-building basis. The cost of heavy construction, con- sisting of sanitary and storm sewers, v~rater supply, roads, railroads, fencing, electrical distribution, and fine grading is estimated on the basis of plant size, visual inspection of photography, scaling from photo- graphs, and published reports. 7 / The costs of construction, distributed over time, are shown in the table. =~= Capital investment was determined from the total cost of con- struction of each plant for each time period. The amount of construc- tion work as a share of fixed capital assets is known for a number of Soviet industries as of 1 January 1956. The share of construction in fixed capital assets used in this publication is the same as that of the Soviet automobile industry=~==:= -- 44.7 percent. 8/ The limitations of the available data are such that a further bxpen- diture of tune and effort could not improve significantly-the estimates made in this publication. Assumptions have been made, the validity of which.cannot be checked, regarding the labor force, vertical dimen- sions, details of design, materials and equipment used, and the rate P. 5, above. , =~=~ Data are not available on the ratio of the -cost of construction to fixed capital assets for the Soviet aviation industry. Of the data available, those relating to the automotive industry are estimated to be most ap- plicable. Although the reported figure of 44.7 percent has been used, it should not be construed to mean that the figure is accurate to a tenth of a-.percent. - 6 - TOP SECRET CHESS RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 TOP SECRET CHESS RUFF of construction. On the basis of a belief that errors in the assumptions will tend to balance out, a probabie range of error of plus or minus . ZO percent has been estimated. Particularly troublesome problems, which made most of the assump- tions necessary, ?ere as follows: 1. The reliability of dimensions, particularly the vertical dimensions; The lack of valid information relative to the size of the const_ruct~on and production labor force; 3. The lack of information on the magnitude of those facilities that normally are under- ground; and 4. The lack of firm data on location of sources of supply and the time allowed by Soviet authorities for completion of each phase of construction. - 7 - TOP SECRET CHESS RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 TOP SECRET CHE55. RUFF Administration ~lacbinejAssembly;~Shop Forge and foundr}- WarehousejStorage Powerplant Airfield related 'Figure USSR: KLIYBYSHEV AIRFRAME PLANTS NO. I AN D 13 TOP SECRET CHE55 RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 TOP SECRET tHE55 RUFF i Administration 2 1lachine%Assembl}'%Shop 3 Forge and foundry 4 lL'arehouse' Storage 5 Engine test building Rai I road Road -w- Wall Figure 2 USSR: KUYBYSHEV AIRCRAFT . ENGINE PLANT NO. 24 TOP SECRET CHESS RUFF, Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 TC~P CF(''R~T C,'HFSS RUFF 1. CLA. CL4/RR EP SC 64-16, Cost of Construction and Capital Investment in the Dnepropetrovsk Missile Development and Production Center, Oct 64, p. 8-11. TS CHESS RUFF/NO FOREIGN DISSEM. _ 25X1 2. Air. PIR 60-2, Kuybyshev Airframe Plant Stalin 1, SINOFORN NPIC. R-341/64; Airframe Plants No. USSR, May 64. TS .CHESS RUFF. I~TPIC. R-893/64, Kuybyshev A}rcraft Engine Plant No. 24, Kuybyshev, USSR, Oct 64. TS CHESS RUFF. 3. CIA. CIA/RR -GB 64-16,' Climatic and Soil Data on Kuybyshev, _ May 64, p. 4. S. 4. USSR, Gosstroy. Spravochnik posobiye po material'no- tekhnicheskomy snabzheniyu stroitel'nykh organizatsiy (Reference Aid on Material-Technical Supply of Construction Organizations), ' .Moscow, 1963, p. 100. U. 5. CIA. CIA/RR RA-23, Estimated Floorspace of Kuybyshev Air- ? frame Plant No. 1 and Kdybyshev Airframe Plant No. 18, Dec 57 , p. 4. S. 6. CIA. CIA/RR EP SC 64-16 (1, above). ? 7. CIA. CIA/RR RA-23 (5, above). NPIC.` R-341/64 (Z, above). NPIC. R-893/64 (2, above). Air. PIR 60-2 (2, above).. 8. CIA.. CIA/ RR EP SC 64 -16 (1, ? above) , p. 1 1- 12. - 9 - TOP SECRET CHESS RUFF Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2 This- document contains information affecting the notional sec vri ty,af the United States within the meaning of, the espionage lows U. 5. Code Title 18, Sections 793 and 794. The law prohibitz its transmission or the revelation .of its contents in any manner to an unauthorized pets on, as well os its use in any manner prejudicial to the safety or~interesr of the United~States or for the benefit 'of any foreign government to the det-lment of the United States. it is to be seen only by personnel especially indocttinated and authorized to-receive information in the designated con tro: cl+annel s. Its security must be mgintgined in occordgnce with ra gulations pertaining to TALENT-KEYHOLE Control System. Declassified in Part -Sanitized Copy Approved for Release 2012/03/23 :CIA-RDP78T05439A000500070010-2

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